cambridge pre-u teacher guide business and management

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Cambridge Pre-U Teacher Guide

Cambridge International Level 3

Pre-U Certificate in

BUSINESS AND MANAGEMENT

Available for teaching from September 2009


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Teacher Guide

Business and

Management (9771)

Cambridge International Level 3

Pre-U Certificate in Business and Management(Principal)

For use from 2009 onwards


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CIE retains the copyright on all its publications. CIE registered Centres are permitted to copy material

from this booklet for their own internal use. However, CIE cannot give permission to Centres to

photocopy any material that is acknowledged to a third party even for internal use within a Centre.

Copyright University of Cambridge Local Examinations Syndicate 2009


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Cambridge International Level 3 Pre-U Certificate

Business and Management

9771

ContentsPage

Introduction 4

PART ONE: CURRICULUM CONTENT 6

Unit 1 The Business Environment 6

Unit 2 Marketing 24

Unit 3 Accounts and Finance 38

Unit 4 Operations and Project Management 48

Unit 5 People in Organisations 56

PART TWO: PAPER 3 PERSONAL INVESTIGATION 68

Getting Started 68

The Proposal 69

The Research and Referencing 70

The Writing Process 70

Personal Investigation Administration and Guidelines 72

Key to Symbols for Book References and Other Resources 74


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Introduction

The Teacher Guide to Cambridge Pre-U Business and Management is intended to offer useful

additional material to that provided in the syllabus, with ideas for teaching and course planning.

At a later date, annotated exemplar candidate work will be available, together with standards

exemplification. In the meantime, a Trialling Report is available for teachers with examples of

students responses to the first sample papers and examiners comments.

Additionally, teachers are reminded of the Cambridge Pre-U Online Community website

http://cambridgepreu.cie.org.uk where new material for Business and Management will be posted and

opportunities offered for exchanging ideas with other teachers.

A key to the symbols used in Part I for books and other resources is printed at the back of the guide.

General Introduction to Cambridge Pre-U Syllabuses and Diploma

Cambridge Pre-U is a qualification designed to:

Inspire, challenge and reward students.

Allow teachers to play to their strengths and share their passion for the subject.

Cambridge Pre-U aims to offer a coherent qualification framework with a clear focus on students

preparation for entry into Higher Education. It is underpinned by a clear set of educational aims:

Encouraging the development of well-informed, open- and independent-minded individuals.

Promoting deep understanding through subject specialisation, with a depth and rigourappropriate to progression to Higher Education.

Helping learners to acquire skills of close critical reading, problem-solving, critical thinking,

creativity, independent learning and effective communication.

Recognising the wide range of individual talents and interests.

Promoting an international outlook and cross-cultural awareness.

Cambridge Pre-U syllabuses are not modular. Their linear approach provides coherence and makes

full use of teaching and study time, thus offering stretch and challenge to all. They offer schools the

opportunity to reclaim a term currently lost in the UK to revision and examination. It is estimated that

1520 percent of the total course time can be reclaimed in this way.

In addition, by seeking to resist fragmentation, the syllabuses also aim to provide intellectual

coherence and conceptual progression, promoting the identification and exploration of connections

between aspects of a subject.

Cambridge Pre-U is not aimed solely at the very top of the ability range, but rather provides a

platform for all students who aim to progress to Higher Education to develop and realise their

potential. Cambridge Pre-U will stretch candidates of the highest ability, while ensuring that other

candidates are assured of an intellectually stimulating and coherent course.


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Linear courses are, of their very nature, more challenging because they:

Allow more teaching and learning time, which itself provides room to go further or deeper in a

subject.

Allow a subject to be taught in a more integrated and coherent way.

Break out of a retake culture.

The experience of schools that require GCE students to take all modular exams at the end of two

years is that the greater room for teaching more than offsets any apparent advantage gained through

retaking modules.

Not all Centres will be aiming for the Diploma at the outset. However, two of its core elements the

Global Perspectives course and Independent Research Report (GPR) are intended to be taught

as successive one-year courses and can be pursued independently of the full Diploma. Global

Perspectives demands a 1500-word essay and a 15-minute presentation as well as assessing

critical analysis skills through a short examination. The Independent Research Report is a 4500

5000 word written report. Both of these Pre-U core elements will help to develop the research and

presentation skills so useful for subject-based Personal Investigations in year two of the subject

course. The Independent Research Report could focus upon an area of interest generated by one of

the Principal subjects taken by the candidate. The two core components can be certified as Cambridge

Pre-U Certificate in Global Perspectives and Independent Research. It can be a stand-alone certificate

and when combined with three Cambridge Pre-U Principal subjects, it completes the requirement to

be awarded the full Cambridge Pre-U Diploma.


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PART ONE: CURRICULUM CONTENT

Unit 1: The Business Environment (65 75 guided learning hours)

Some aspects of this unit are fundamental to understanding business behaviour. Other aspects provide con

after business behaviour has been developed. So, for example, there are aspects of Marketing for which un

of a business is an important consideration whereas understanding of government economic policies is im

maturity to understand) but not crucial. It may, therefore, be appropriate to teach topics from this unit at va

rather than at the beginning.

1.1 Enterprise (guided hours: 2 4)

Topic Learning outcomes Suggested teaching and

candidate activities

Entrepreneurship and

Business Start-ups

Risk v reward

Identify the risks associated with business

Identify the potential rewards to business owners

Explain the risk v reward dilemma

What makes a successful

business?

Simply pose this question to thestudents.

Role of entrepreneurs

Identify the role of an entrepreneur in business

development

Innovation

Leading

Creating wealth

Assess the role of entrepreneurs

Practicalities of start-ups and government support

Identify the key features of starting a business:

Idea

FinanceMarket

People customers, employees

Objectives

Explain government initiatives to help business

start-ups

Assess the usefulness of government initiatives

Review other support for business start-ups

Discuss the realities of setting up a new business

A practical business start-up

exercise along the lines of Young

Enterprise


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1.2 Business and the Economy (guided hours: up to and including The Business Cycle 8 12, for

9 11)

This is a major section of the syllabus. The emphasis should be on the impact that markets, competition an

business rather than a study of economics. It is a topic area that can usefully be taught via current affairs, s

programmes can be central to the development of ideas. Government policies are continually changing (e.g

crunch) so students are expected to be familiar with recent and current developments in macro economic



The Market and

Competition

Impact of competition

Understand the concept of competition in the business

world

Discuss the impact of competition on businesses:

Price and non-price competition

Non-competitive behaviour

Show understanding of the need for regulation by the

Office of Fair Trading and the Competition Commission

Define market:

Buyers and sellers

Demand and supply

Medium of exchange

Competition

Identify competitive forces in a given situation:

Competitors (process, quality, customer service)

Customers (needs and wants)

Analyse the dynamic nature of markets

Understand imperfections in a competitive market:

Predatory pricing

Cartels

CollusionsMarket sharing

Price fixing

Detailed grasp of market

structures is not required

Investigate various markets


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Supply and demand

Define supply and demand (see also 2.3)

Identify and analyse factors influencing demand in the

short and long term:

Price

Disposable income

Advertising

Demographic changesInterest rates

Tastes

Price of substitutes and complements

Availability of credit

Identify and analyse factors influencing supply in the

short and long term:

Number of businesses supplying product/service

Technological change

Subsidies and taxes

Weather

Management

Specific business factors

Draw and explain the supply and demand diagram

Distinguish between movements along curves and

shifts of the curves

Analyse equilibrium in a market using diagrams

Recognise the reasons for and consequences of excess

supply and excess demand

Discuss ways in which businesses can respond to

excess supply or demand

Worksheets

Competition

Define competition

Discuss the impact of competition


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Globalisation

Define international trade

Discuss the role and importance of international trade

Show understanding of the increasing integration of

world markets for goods and services

Discuss the importance of further integration of world

capital markets

Discuss the consequences of increased international

trade:

Competition

Structural change within economies

Integration of capital markets

Define and explain multinationals

Assess the increasing power/influence of multinationals

Explain the increasing integration of world markets for

goods and services

Define and explain globalisation

Assess the impact on businesses of increased

globalisation:

Competition

Scale of operations and costs (see economies of

scale in Operations Management)

Location decisions

Mergers and joint ventures

Currency movements

Discuss the pros and cons of increased globalisation

Explore on the web.

Developing markets

Recognise the contribution to world trade from

emerging markets such as southern Africa

Discuss the constraints that may make development of

emerging markets difficult

Show a basic understanding of the Chinese and Indian

economies and the implications of their growth for the

UK

Show understanding of the EU as a single economy

Assess the effects of such markets on the UK including

enlargement of labour markets


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The Business

Cycle

Define and explain the business cycle:

Boom

Recession

Slump

Recovery

Long-run trend

Explain the difference between the cycle and the

business trendIdentify and explain possible causes of business cycles:

External shocks

Price spikes

Inappropriate management of the economy

Analyse the implications for businesses of various

stages in the business cycle including price sensitivity

in a recession

Government

Macro-Economic

Objectives

Show understanding that the state of the economy has

an impact on business behaviour

Understand and explain the term macro economic

objectives

Understand that governments pursue several (andconflicting) objectives in managing the economy:

Inflation

Growth

Employment

Demonstrate understanding of current government

targets for these objectives:

CPI inflation target

2.5% growth target

Low unemployment

Analyse and discuss the impact of these objectives on

policies, the business environment, businesses

Investigations of news media,

government statements


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Taxation Understand how taxation could be used to achieve

government economic objectives

Define direct and indirect taxes

Explain the distinction between direct and indirect taxes

Identify, explain and analyse types of taxes:

VAT

Corporation tax

Income taxBusiness rates

National insurance

Discuss the impact on businesses of various taxes:

Higher selling process

Increased costs

Falling demand

Discuss the impact on consumers of:

Falling disposable incomes

Changing purchasing patterns

Recognise that government taxes and spending are

linked and that government spending can influence

businessesInterest Rates Show basic understanding of factors influencing

interest rates

Show understanding of the role of the Monetary Policy

Committee in setting interest rates and how this is

influenced by government targets

Assess the impact of rising/falling interest rates on

businesses

Consumers saving/spending

Consumers real incomes

Exchange rates

Borrowing/investment decisions

Opportunity costs, e.g. for stocks

Debtor/creditor behaviour


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Exchange Rates Show basic understanding of the factors influencing

exchange rates:

Interest rates

Government policies

Balance of trade

Performance of other economies

Assess the impact on businesses of a rising pound:

Importers, businesses that rely on importedcomponents

Exporters

Evaluate a change in exchange rates on a business

Unemployment Show basic understanding of the main types of

unemployment including:

Structural

Cyclical

Understand the impact of high unemployment on

businesses:

Reduced demand for products or servicesReduced pressure on increasing wages

Recruitment issues

Inflation Show understanding of the meaning of inflation

Show understanding of how inflation is measured

through the CPI and RPI

Show basic understanding of how these indices are

calculated

Show understanding of the main differences between

these two indices

Show how inflation can have an impact on businesses:

Cost pressures

Reduced demand

Difficulty with planning

Un-competitiveness

Wage-price spirals

Rising interest rates

Show understanding of the meaning of deflation

Explain the impact of deflation on businesses e.g. as

seen in Japan


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1.3 Objectives (guided hours: 5 7)

The consideration of objectives is central to the subject and investment of time will pay dividends later on i

be aware that objectives often conflict and that differing stakeholders (see later) may have different objectiv

in this section will be invaluable throughout the course where objectives and strategies/tactics to meet obje

Topic Learning outcomes Suggested teaching andcandidate activities

Government Macro-

Economic Objectives

(see 1.2)

Types of Objective Understand the importance of objectives for

successful business activity

Distinguish between specific objectives and

aspirational objectives

Distinguish between types of objectives:

Tactical (short term)Strategic (long term)

Corporate

Departmental/operational

Understand the importance of timescale in setting

and achieving objectives

Understand that tactics arise from strategies

Discuss objectives such as:

Maximise profit

Maximise sales

Increase market share

Survival

Discuss why objectives might change over time

Objectives can be taught both

theoretically and in a practical

context. It may be worth setting

up the ground rules first and

then developing the practical

applications.

Time should be spent clarifying

differences.

SWOT and Ansoff can be develop

in relationship with setting

objectives and refined further wh

they arise in marketing (and othe

strategies.


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Uses and Problems

of Objectives

Uses and Problems

Discuss the main uses of objectives:

Goal setting

Motivating

Control

Review

Discuss the extent to which objectives can be

achievableDiscuss the extent to which objectives might conflict

Discuss the problems in setting objectives:

Who?

Should there be consultation?

What is the process?

SMART

Understand the criteria for good objectives (SMART):

Specific

Measurable

Achievable

Realistic

Time basedIdentify ways in which objectives might help or

hinder a business in a given situation


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1.4 Stakeholders (guide hours 4 6)

This ties in closely with Objectives (1.3).

Candidates should be encouraged to see business situations from a variety of perspectives, and the consid

this respect. The identification of stakeholders could usefully come before consideration of objectives.



Stakeholders in a

Business

Identify the key stakeholders in a business and what

is their interest in the business:

Owners/shareholders

Customers

Managers

Creditors

Employees

Pressure groups

Teachers could add the community to the list of

stakeholders for completeness.Identify the extent to which various stakeholders may

have influence/control over business activities

Take a business situation and

identify the stakeholders.

Develop their interest in the

business.

Develop interests that conflict.

Discuss scenarios and how they

might impact on stakeholders.

Stakeholder

Objectives

Identify likely objectives of stakeholders in a given

situation, e.g:

Employees maximising wages

Owners maximising profits

Business showing corporate responsibility

Discuss the extent to which stakeholders objectives

might conflict

Discuss the importance of resolving these conflicts

See Objectives (1.3).


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1.5 Classification of Businesses (guide hours 9 11)

This is a fairly dry bit of the syllabus, but, nonetheless, important. A suitably designed assignment could

of class work. Consideration of this section could come earlier as one of the foundations for understanding


candidate activitiesLegal Structure Identify the main types of legal structure for a

business in the private sector:

Sole trader

Partnership

Private limited

Public limited (PLC)

Franchise

(Cooperative)

Understand the key characteristics of the various legal

structures including documents they require

Discuss why different forms of legal structure exist

Compare and contrast legal structures

Identify the main types of legal structure in the public

sector

Discuss why there might be the need to change the

legal structure of a business

Judge the suitability of a legal structure in a given

situation

A survey of local businesses

getting candidates to find out

about ownership.

Use case material for developing

reasons for change of structure

and implications.

Sector Distinguish between the public and private sectors

Explain why some organisations are owned/run by

the state and others are in the private sector

Discuss possible objectives for public sector

organisations and how/why these might differ from

the private sector

Recognise that objectives may be different between

economic sectors (public/private) and for different

organisations within a sector


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Size Identify the main methods of measuring the size of a

business:

Turnover

Profit

Number of employees

Assets

Discuss the appropriateness of differing methods

Discuss how size impacts on the behaviour of

businesses

Discuss the importance of small businesses

Discuss why the government encourages and

supports small businesses

Discuss why small businesses may survive

Understand why businesses may seek to grow:

Reduced costs (economies of scale) see 4.2

Market power

Prevention of being taken over

Survival

Identify the ways in which a business can grow:

Organically

Mergers, acquisitions, takeovers

Discuss the advantages and disadvantages of a

business growing

Get candidates to investigate the

size of a named list of businesse

using a variety of ways of

measuring size.

Economic Sectors Define the economic sectors:

Primary

Secondary

Tertiary

Recognise the problems associated with classifying a

business into an economic sector

Recognise the importance of the emergence of the

service/knowledge economy

Give examples of businesses in each sector

Identify the trends within the sectors and reasons for

these trends as well as the implications


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1.6 Business Opportunities and Constraints (guided hours: 4 6)

Opportunities and constraints created by the government have already been covered in 1.2.

Many of the topics in this section will occur throughout the course. So, for example, legal constraints will re

Goods, Advertising, etc.) and Human Resource Management (Health and Safety, Employment Law) so it ma

and when necessary rather than as a separate topic at this stage.



Social The following in italics are not in the syllabus but may

provide a useful introduction:

(Recognise that social developments will have an

impact on business behaviour)

(Identify important current social developments)

(Analyse how changes in societys values can have an

impact on business decisions/behaviour)

Understand why demographic changes might have

an impact on business behaviourDescribe the trends in demographic change in the UK:

Falling birth rates

Aging population

Discuss how such changes have and will influence

business decisions, e.g. the growth of Saga

Investigate demographic chang

Investigate how businesses

have responded to demographi

change

Legal Show basic knowledge of key legislation governing

businesses:

Data Protection Act

Disability Discrimination

Employment Equality (including age)

(other legislation appears in Marketing and

Human Resources)Discuss how such legislation might impact on

business behaviour:

Increased short run costs

Decreased long run costs

Wages via the minimum wage

People management


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Technological Explain technological developments:

EPOS

CAM

CAD

Robotics

Automation

E-commerce

Internet, including price comparison sitesDiscuss the uses of such technologies in business:

Products

Materials

Processes

Systems

Marketing

Discuss the benefits and threats of such technologies:

Production

Marketing

Consumer behaviour

Employees

Visits could be useful

Environmental Define and give examples of external costs such ascongestion and pollution

Explain the difference between external costs and

accounting costs

Identify forces for addressing environmental issues

and other external costs:

Government

Consumers

Pressure groups

Discuss the impact of changes in consumer

preferences relating to green issues

Discuss ways in which businesses can respond to this

change in consumer demands

Discuss the role of businesses in meeting external costs

Discuss why businesses might respond to the

environmental forces

Discuss how businesses are responding to

environmental issues giving examples

Explain the role of environmental audits

Explain strategies for reducing emissions

Discuss developments such as environmental policies

and audits, the green pound, carbon trading

Visiting speakers, e.g. from BPetc.


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Business Ethics Explain the meaning of ethics

Give examples of ethical issues

Explain why ethical issues have an impact on

business behaviour

Discuss the potential conflict between ethics and

other business objectives/stakeholders

Discuss examples of unethical behaviour by

individuals and businessesDiscuss why businesses might want to behave more

ethically

Discuss how changes in morals/ethics can impact on

business decisions

Discuss the costs and benefits of the Ethical Trade

Initiative

Investigate some response to ethical issues such as:

Fair Trade

Ethical investments

Ethical codes

Explore mission statements to

identify ethical approaches


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1.7 Planning (guide hours 2 4)

Plans and strategies are a theme throughout this course. This section should set the background against wh

will be developed later on.


candidate activitiesPlanning Strategic planning

Define strategic plan

Identify and explain different needs for planning:

Anticipated/unanticipated

Incremental catastrophic

Controllable/uncontrollable

Identify the elements of a strategic plan

Discuss how strategic plans can be implemented:

Mission statements

Corporate plans

Discuss the strengths and limitations of strategic plans

Contingency planning

Define contingency plans

Give examples of when and why contingency plans

might be necessary

Discuss the strengths and limitations of contingency plans

Discuss how contingency plans can help prepare for

shocks such as:

Severe recession

Global flu epidemic

Develop a contingency plan for

the school/college

Porters Five Forces model

Describe Porters Five Forces model

Buyer power

Supplier power

Entry threat

Substitute threat

Rivalry

Analyse the uses and limitations of Porters model


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1.8 Corporate Issues (guided hours: 2 4)

This is a fairly new area for study at this level. Useful areas for study will come from recent developments i

from the behaviour of businesses such as Enron and the behaviour of banks in the recent credit crunch. Can

lessons learned to a variety of business situations.


Culture, Values,

Attitudes, Beliefs

Understand the meaning of culture in a corporate

context

Understand how culture can influence business

behaviour:

Decision making

Management style

Discuss the importance of corporate culture in relation

to employee motivation and consumer perceptions

Understand the issues involved in changing corporate

culture

Discuss ways in which corporate culture could bechanged:

Time

Commitment

Consultation

Corporate

Governance

Define corporate governance

Explain the role of stakeholders in corporate

governance

Shareholders

Investors

Directors

Managers

Discuss the importance of initiatives such as

The Cadbury Code of Best Practice, The Cadbury

Committee


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1.9 Equities (guided hours: 2 4)

This section may be worth considering in conjunction with Sources of Finance (3.3).



Equities The StockMarket

Describe the functions of the stock marketAppreciate the different types of listings on the stock

market

Discuss the benefits and problems arising from being a

listed company

Explain factors that influence a share price:

Investor sentiment

Company accounts

Prospects

Valuations

External events

Explain how share prices have an influence on business

behaviour:

Bonuses

Likelihood of a takeover

Ability to raise finance

Understand the role of private equity companies

Analyse the growth of private equity leveraged buyouts

and their impact on business behaviour

Shadow stock marketinvestment games may be a

useful way of delivering parts

this unit.

Contingency, Tests, Consolidation, Skills Development (guided hours: 15)



Contingency, Tests,

Consolidation, Skills

Development

In addition there are 20 hours for the whole course

available for synoptic skills development and 20 hours for

project preparation which can be reallocated if appropriate


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Unit 2: Marketing (65 75 guided learning hours)

Central to the understanding of marketing is the role and influence of the customer, the importance of mark

integrated marketing mix as a tool to achieve marketing objectives.

The aim of this section of the syllabus is to lay the foundations of marketing within the overall context of bu

relationship between marketing and other business functions is important. For example, it is important to a

usually undertaken within a tight budget and that the size of the business will heavily influence the marketi

also be seen as one strand of business decisions which are likely to also have an impact on other functiona

human resource management. Candidates must be able to construct suitable overall marketing strategies f

Promotion) or construct individual strategies based on one of the 4Ps. Marketing should link in with constra

2.1 Marketing and Objectives (guided hours: 10 12)



Introduction Define marketing

Define market

Explain importance of marketing in relation to

meeting needs of customers

Understand marketing in relation to the objectives of

a business

Discuss ways in which marketing objectives may

differ from those of other areas of a business

Use a case resource to develop

basic ideas through discussion

Definitions and

Objectives

Discuss various marketing objectives

Recommend marketing objectives in a given situation

Develop criteria for measuring the success in meeting

objectives

Review suitable marketing objectives for a business

Can be usefully tied in with

Objectives (1.3).

Develop objectives in a practic

situation.

Customer

Relationship

Management

Understand the importance of customer relations in

marketing

Explain how businesses may use customer relations

as part of a marketing strategy

Identify methods of using customer relations in

marketing, e.g. loyalty cards, personalised marketing,

customer databases

May be useful to get a custom

care adviser in.


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Market Positioning,

USP

Explain how businesses position products/services in

various markets

Identify the reasons for market positioning and

repositioning

Discuss examples of where product positioning has

been effective

Define USP

Give examples of USPs

Assess the importance of USP and product

differentiation in market positioning

Discuss the usefulness of the concept

Develop USPs from a given se

of products.


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2.2 Market Research (guided hours: 9 11)

This particular topic has great importance as it is likely to provide skills that will be invaluable for candidate

their project.

Market research is best taught through practical activities of candidates carrying out their own research. Mo

rudimentary understanding of what is involved in market research from their earlier studies in GCSE, howev

is likely to have been undertaken will be rudimentary compared with the requirements of business. The aim

previous experience to introduce a much greater sense of purpose (problem solving) and far greater precisi

Skills should also be developed so that the research undertaken ceases to be mechanical and allows candid

they obtain through critical thinking and hypothesis testing.

It is important for candidates to understand that market research is much more than just questionnaires and

assessing a market. Market research will not supply all of the marketing answers.

There is a danger that it is taught in isolation, however, it should be part of business and marketing strategy

Candidates should be encouraged to identify market research needs for a given business situation. They sh

and possible costs. Ideas for secondary sources could be identified for the candidates. Once these have bee

can be adopted.



Types of Research Introduction to market research

Understand the nature and purpose and role of market

research

Identify reasons for market research

Investigate research strategies

An introduction to the topic

can usefully be achieved using

www.bized.co.uk Market

Research PowerPoint


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Primary v secondary

Define primary (field) and secondary (desk) research

Discuss advantages and disadvantages of the two

approaches

Discuss criteria for selection of market research methods

Demonstrate an understanding of different source of

information

Evaluate the usefulness and appropriateness of different

market research methods in differing situations

Mainly through practical marke

research exercises and case

studies

Sampling Sampling methods

Describe the different methods of sampling from a

population:

Convenience

Quota

Stratified

Cluster

Random

Multi-stage

Assess methods in a given situation

Recommend a sampling method in a given situationAnalyse the reasons for sampling

Recognise the potential problems and limitations of

sampling such as human bias

Discussion designed to show

candidates that the purpose

of sampling is to contain costs

while increasing the chance of

useful market research results.

Testing

Demonstrate an understanding of the role of probability

in sampling

Define and interpret the normal distribution

Show understanding of how the normal distribution,

standard deviation and sampling error are used to

interpret results of research and can be used to increase

the accuracy and validity

Explain why research can lead to misleading results

Review the uses of the normal distribution in testing

sample data including assessing its limitations

Discuss the merits of using the normal distribution in

relation to business decisions

Non-mathematicians may

find this challenging. Worth

spending some time developin

probability ideas, e.g. tossing

coins.

Make as practical as possible.


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2.3 Elasticity (guided hours: 4 6)

It may be useful to include this section when dealing with price in The Marketing Mix (2.4) or within Unit 1 w

are developed.

It is important to realise that elasticity is only a tool and in many practical influences there are either (a) diff

many other variables changing to isolate a value.

Emphasis should be put on possible uses such as for pricing decisions. It is also important to be clear on lim



Price Elasticity of

Demand (PED)

Understand the main determinants of demand

and how these can influence demand changes

Show diagrammatically the relationship between

price and supply/demand

Define price elasticity of demand

Calculate the price elasticity of demand

Understand the business significance of the result

Interpret/analyse the results

Use PED for pricing and other decisions

Recognise the usefulness and limitations of price

elasticity in practical situations and discuss its

importance for business decisions

See also Unit 1.

Demonstrate the formula

and use examples to apply

preferably in a decision context.

Income Elasticity of

Demand

Define income elasticity of demand

Calculate the income elasticity of demand

Interpret/analyse results in a given situation

Recognise the usefulness and limitations of income

elasticity in practical situations and discuss its

importance for business decisions




Advertising Elasticity

of Demand

Define advertising elasticity of demand

Calculate the advertising elasticity of demand

Interpret/analyse results in a given situation

Recognise the usefulness and limitations of

advertising elasticity in practical situations and

discuss its importance for business decisions





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2.4 The Marketing Mix (guided hours: for Introduction and Price 4 6, for other sections see be

Clearly the key area of marketing, best taught largely through development of the application of ideas in pr

It is important to emphasise the integrated nature of the mix and to develop ideas alongside constraints tha

advertising on TV is suitable for only a few businesses, destroyer pricing is not suitable for the corner shop

Case studies, TV programmes and studies of individual businesses can all play an important role in develop



Introduction Define the marketing mix

Recognise aspects of the mix in practical situations

Explore a product and its

marketing.

Price Understand the importance of price in the mix

Link this understanding with the concept of

elasticity and demand curves

Link this understanding with the concept of

marketing objectives

Understand that prices can be based on:

Costs

Competition

Markets in different situations

Analyse (including calculating) and discuss pricing

strategies in different situations:

Based on cost, customers and competition

Cost-based such as contribution, mark up,

absorption, target

Market-based such as penetration, skimming,

loss leaders, price discrimination, discounts

and sales, psychological

Competition-based such as going rate,destroyer

Discuss how pricing strategies might change over

time

Discuss pricing issues when dealing with special

orders using contribution

Link in with supply/demand,

elasticity.

Price comparison exercises.

Explore whether price bears a

relationship with cost in various

situations.

Investigate price charged for

well known product/service

(e.g. supermarkets, travel

agents, estate agents).

Develop ideas for pricing a

completely new product/service.


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Place (guided hours:

2 4)

Understand the importance of place (distribution) to

the marketing mix

Appreciate the difference between place and

location in a business context

Identify and explain different channels of

distribution:

Wholesalers

IntermediariesAgents

E-commerce

Evaluate appropriate channels of distribution in a

given situation

Explore distribution channels

for a number of products or

services.

Develop alongside the rise of

e-commerce.

(Often confused with location.)

Product (guided

hours: 4 6)

Understand the importance of product in the

marketing mix

Explain the concepts of product portfolio/product

mix, product development, product differentiation

Demonstrate understanding of the stages in the

product life cycle

Analyse the product life cycle in a given situation

Discuss methods to extend the life cycle of aproduct such as new markets for existing products

Analyse how the mix might change at various

stages in the life cycle

Use the Boston Matrix to analyse the current

position of products within a firms portfolio

Evaluate the usefulness of the Boston Matrix

Understand the role of research and development in

product development

Evaluate the likely impact of research and

development expenditure on a product

Use product portfolio analysis in a given situation

Discuss the use of product differentiation in a given

situation

Discuss what is meant by

product.

Use artefacts to develop ideas

in the classroom.

Important that ideas relating to

services are developed as wellas tangible products.

Develop product life cycle

alongside ideas of cash flow.

Explore practical changes of

marketing over a product life

cycle.

Develop Boston in a decision

context.

Develop differentiation through

group work in an actual market

e.g. the car market.


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Promotion (guided

hours: 4 6)

Understand the importance of promotion in the

marketing mix

Define and explain the difference between above

and below the line promotion

Recognise potential constraints on advertising

including costs and regulation (such as ASA)

Discuss examples of different types of promotion

Analyse the usefulness of AIDA in choosing

promotional strategies

Analyse the relative merits of DAGMAR in

developing a strategy

Analyse and discuss methods of promotion

Select and justify the choice of appropriate methods

in a given situation

Discuss the usefulness of advertising elasticity in

the creation of a promotional strategy

Lots of classroom activities.

Its important to develop with

a degree of realism through

consideration of promotional

budgets.

Get candidates to bring in

promotional materials.

Develop a promotion campaign

(school based?) within a budget.

The Integrated Mix

(guided hours: 4 6)

Understand the importance of the mix being based

on objectives

Explain why elements of the mix should be

consistent with each otherAssess possible methods of blending the mix to

create an overall marketing strategy

Discuss the importance of the mix to be integrated

with all aspects of a business

Ties together previous sections

through practical work such as

case studies. OCR marketing

case studies will be very useful.


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2.7 International Marketing (guided hours: 2 4)

This section links in with globalisation and developing markets. Practical studies of how different businesse

approaches to international marketing should prove very useful.


candidate activitiesInternational

Marketing

Demonstrate an understanding of the additional

features involved in marketing to an international

market

Analyse why overseas markets might be different

Discuss the benefits and disadvantages of

marketing on an international scale

Discuss methods of entering overseas markets such

as joint ventures, agents, overseas subsidiaries

Develop a marketing strategy to develop an

international market in a given situation

Analyse the usefulness of pan-world strategies

Analyse the usefulness of separate strategies for

each market

Best taught in conjunction with

Globalisation.

Plenty of examples of

comparisons.

Link with an overseas school?

International magazines,

newspapers.


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2.8 Marketing Strategy (guided hours: 2 4)

This section brings together all of the components studied earlier and is best delivered to summarise and r

should be seen in relation to the constraints/enablers from other aspects of business such as finance, peop

environment.


Marketing Strategy Demonstrate an understanding of marketing

strategies

Demonstrate an understanding that consumer

wishes should be at the core of decision making

and that businesses should carefully monitor

consumer trends

Show understanding that strategies are influenced

by available finance, the nature of the market, the

state of the economy

Use techniques such as the Boston Matrix, SWOT

and product life cycles (PLCs) to develop marketingobjectives and hence marketing strategies

Demonstrate that strategies evolve and change over

time

Offensive marketing

Analyse the usefulness of offensive marketing

strategies in a given situation

Ansoffs Matrix

Assess the usefulness of Ansoffs matrix in deciding

on market strategies

Marketing myopia

Recognise the dangers of marketing myopia

Integration of previous ideas

through case studies, class

discussion, practical problem

solving.

Best taught in a decision making

context.

May be best to teach decision

tools (SWOT, Ansoff) first (PLC

and Boston already dealt with inProduct 2.4).

Time dimension is a very import

consideration, as is the integrate

nature of the mix.


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2.9 Value (guided hours: 1 3)



Value Define value analysis

Assess the balance of value, perception and cost in a

given situation

Carry out a value analysis on an

artefact.




Contingency,

Tests,

Consolidation,

Skills

Development


available for synoptic skills development and 20 hours for

project preparation which can be reallocated if appropriate.


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Unit 3: Accounts and Finance (60 70 guided learning hours)

This unit introduces candidates to the importance of the management of finance, the keeping of and analysis

of businesses financial performance. Finance and accounting should be seen in the context of business own

decisions rather than from the perspective of the accountant. So, for example, it is the use of accounting info

is stressed, not the actual construction of accounting statements.

The concept of costs and profits arise in many areas of the subject (pricing decisions, location and productio

be a case for considering this section sooner rather than later.

3.1 Costs Revenues and Profit (guided hours: 4 6)



Costs Understand the needs for cost data

Understand the concept of cost centre

Define and give examples of :

Variable costFixed cost

Direct cost

Indirect cost/overheads

Average cost

Total cost

Marginal cost

Contribution

Use cost data in various calculations, e.g:

Total cost

Break even (see 3.6)

Cost plus

ContributionInterpret costs in a business context

Use cost information for aiding business decisions

Understand that there are different ways of allocating fixed

costs

Discussion of the costs of runnin

a car.

Link in to business decisionsinvolving costs.

Opportunity cost is not

specifically on the syllabus but

the concept is fundamental to

solutions to the problems of

choice.

Revenue Define revenue

Calculate revenue from given data

Interpret revenue data in a business context


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Contribution

and Profit

Contribution and profit

Define profit

Define contribution

Calculate and interpret profit and contribution data

Explain the difference between contribution and profit

Undertake contribution decisions

Cost and profit centres

Define cost and profit centres

Understand their purpose and use in business organisations

Analyse and discuss the purpose of cost and profit centres

Evaluate their usefulness

Set up cost centres for an

organisation e.g. college

3.2 Budgets (guided hours: 4 6)

Budgets should be developed as a financial management tool.



Types Define budget

Explain the purposes of budgeting:

AllocationControl

Monitoring resources

Appraising performance

Achieving objectives

Explain types of budget:

Historical based

Zero based

Discuss the relative merits of differing types of budgets

Prepare a budget for an event

Purpose of Budgets Explain the possible uses of budgets

Recognise the problems of setting budgets

Manipulate a budget given changes in circumstances

Analyse a budget in given circumstances

Discuss the implications of using a forecast budget

Discuss the value of budgets to a business

Variances Define variance

Define favourable and adverse variances (for both

costs and revenues) and their impact on profits

Calculate and interpret variances from given data

Analyse the usefulness of variances in a given

business situation


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3.5 Cash Flow (guided hours: 4 6)



Cash Flow Define cash flow in a business context (cf investment

context)

Discuss the importance of cash flow to a business

Discuss the factors likely to influence a forecast of

cash flows

Calculate and interpret actual and/or forecast cash

flows from given data

Demonstrate understanding of the difference

between cash and profits

Demonstrate an understanding of the difference

between a cash flow forecast and cash flow

statement

Set up spread sheets to take the

drudgery from preparing cash

flow forecasts.

Ideal for what if?

Link in with investment appraisal

(3.4).

Methods of improving cash flow

Discuss ways of improving cash flow:

Increasing revenues

Decreasing costs

Changing credit terms

Sources of finance

Practical problems.


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3.6 Break Even Analysis (guided hours: 4 6)

Break even analysis should be developed as a useful tool for managers, with the emphasis on what if ana



Break EvenAnalysis

Distinguish between fixed and variable costsIdentify fixed and variable costs in a given situation

Understand the break even diagram:

Show the variable cost line

Show the total fixed cost line

Show the revenue

Define and show the break even quantity

Define and show the margin of safety

Show the profit/loss at a given level of output

Derive the break even formula and use it to calculate

break even, margin of safety, profit

Identify the possible uses of break even analysis

Use break even analysis in a given situation

Discuss the value and limitations of break even

analysis to a business

Explanation.

Reinforcement through

exercises.

Develop what if to explain

practical uses.


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Income Statement Understand the purpose of the profit and loss

account (income statement)

Understand the main components of the profit and

loss account:

Sales revenue

COGS

Expenses

DepreciationDividends

Define:

Gross profit

Net profit

Net profit after tax

Retained profit

Perform relevant calculations to produce a profit and

loss account from given component data

Analyse the purpose, role and merits of the profit and

loss account for a business and its stakeholders

Interpret a profit and loss through simple comparisons

See above.

Balance Sheet Understand the purpose of the balance sheetUnderstand the main components of the balance

sheet:

Fixed assets

Current assets

Current liabilities

Long term liabilities

Share holders funds including reserves

Define:

Net assets

Capital employed

Understand the links between the balance sheet and

the profit and loss accounts:

Depreciation

Reserves and retained profit

Perform relevant calculations to produce a balance

sheet from given component data

Analyse the purpose, role and merits of the balance

sheet for a business and its stakeholders

Interpret a balance sheet through simple comparisons

See above.


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3.8 Depreciation (guided hours: 4 6)

Candidates should have a basic understanding on how depreciation impacts on the accounts of a business



Depreciation Meaning, definitionsDefine depreciation

Understand that depreciation is not a cash item

Recognise the role of depreciation in the accounts

Recognise that there are several ways in which an

asset could be depreciated

Explain the impact of changing depreciation on the

profit and loss account and balance sheet

Explanation.

Exercises.

Important to emphasise why the

balance sheet still balances.

Straight line

Explain the straight line depreciation method

Calculate depreciation using this method

Decreasing balance

Explain the decreasing balance methodCalculate depreciation using this method

Book value

Review the book value of an asset




Contingency, Tests,


Development


available for synoptic skills development and 20 hours

for project preparation which can be reallocated ifappropriate


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Unit 4: Operations and Project Management (55 65 guided learning

Operations Management is the study of how resources are managed to achieve efficient production/provisi

This unit promotes understanding of operational decisions in managing a business in primary, secondary a

management decisions should be linked with other functional areas of a business such as Marketing and Pe

along side of Marketing as many of the ideas are inter-linked. Production/operational decisions should be se

factors influencing a business such as available finance, impact on employees and external factors.

Many of the ideas relating to production also apply to the provision of goods and services and this should b

appropriate.

Some Operations management ideas relate closely to issues from other units, for example, the concepts of

location relates to globalisation. It may be useful to cover such issues later rather than sooner in the course

4.1 Production methods (guided hours: 4 6)



Production

Methods

Explain production as the process of converting inputs to

outputs with the aim of adding value

Describe different types of production methods:

Job

Batch

Flow

Cell

Lean

Flexible specialisation

JIT

Analyse advantages of different types of production

methods including impact on:

StockQuality

Efficiency

Discuss the factors that may influence the choice of

production method

Select and justify a production method in a given situation

Link production methods with inventory, quality,

continuous improvement, Kanban

Visits, videos.

Opportunities to observe and

analyse a variety of production

systems.

Practical classroom making

exercise involving job, batch, flow


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4.2 Efficiency (guided hours: 1 3)

To be seen in conjunction with capacity (4.3).



Economies andDiseconomies of

Scale

Define economies and diseconomies of scaleUnderstand that these apply to the scale of an

operation rather than the level of production

Discuss the factors that influence the choice of scale

for a business

Distinguish between internal and external economies

Show diagrammatically the impact of economies of

scale

Give examples of various types of economy and

diseconomy of scale:

Managerial

Marketing

Purchasing

Technical

Risk-bearing

Financial

Show understanding of the consequences to an

organisation of becoming too big

Analyse economies/diseconomies of scale in a given

situation

Discuss the reasons for diseconomies of scale

including the concepts of communication and

coordination failure

Explanation.

Bized activity.

Case studies.

Note: there is a danger of

teaching as in Economics.


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4.3 Capacity (guided hours: 2 4)

There is a danger that capacity is seen as a given, in other words that it is a constant. Ideas relating to capa

concepts such as productivity and efficiency so that constraints on capacity can be seen as being suitable fo

capacity. Underutilisation is as important a problem as working close to capacity.


Capacity Define over capacity, under capacity, capacity

utilisation, coping zone

Calculate capacity utilisation and interpret the

results

Assess the implications of operating at different

levels of capacity utilisation

Discuss the reasons for a business performing

over/under capacity

Discuss the implications for a business of operating

over/under capacity

Discuss ways of increasing capacity

Explanation.

Practical examples.

Case studies.


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4.4 Quality (guided hours: 7 9)

Quality should be seen in relation to customers and customer needs. It is Important to link quality in with co

preferences/perceptions, HRM issues. It may be useful to link quality with the ideas behind mission stateme


candidate activitiesQuality Explain the meaning of quality in terms of consumer

demands

Define quality assurance, quality management,

quality control

Explain the roles of detection and prevention

Evaluate the benefits to an organisation, including

efficiency, of using built in quality techniques

Analyse the main methods of quality control:

Inspection

Prevention

Discuss methods for quality assurance:

TQM

Kaizen

Benchmarking

Discuss quality in relation to customers such as kite

marks, BS and ISO standards as well as customer

service and UK/EU legislation

Discuss the link between quality and training

Visiting speakers.

Examining artefacts.

Case studies.


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4.5 Stocks (guided hours: 4 6)

It is important to develop stock control alongside other issues such as the financial implications of holding t

always a trade-off.


candidate activitiesInventory Identify types of stock

Raw materials, components

Work-in-progress

Finished goods

Discuss the role of different types of stock

Define and calculate:

Buffer stock levels

Reorder levels

Reorder quantities

Lead times

Stock out

Construct and interpret stock control charts

Analyse stock charts in a given situation

Vendor rating

Discuss the balance between stock holding costs

and stock out costs

Discuss a stock control policy in a given situation

Link stock control with just in time production

methods

Development of ideas and

application to practical situations.

May be taught alongside lean

production, quality circles.


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4.6 Managing Projects (guided hours 9 11)

Critical Path Analysis should be developed as a decision making tool. Evaluation of its use in given situation

its value.

Most textbooks are traditional in their approach to location with insufficient emphasis given to issues such

and other practical considerations.



Managing Projects Critical path analysis

Explain the purposes of project management

Explain the features of a network diagram (CPA)

Define EST, LFT, LST, EFT, dummy activity, node

Construct a network from given data

Understand the meaning of the critical path

Calculate and interpret the critical path from given data

Explain the terms free float and total float

Calculate and interpret floats from given data

Evaluate the impact of critical and non-critical activities

Discuss the uses of CPA results

Evaluate the use of CPA

Best taught by description first

followed by practical examples.

Important to develop strengths

and weaknesses through

discussion.

May be difficult for non-

mathematicians.

Planning production

Explain Gantt charts

Interpret and analyse Gantt charts

Location

Describe the factors likely to influence the choice of

location for a business:

Markets

Resources

CostsLabour

Assistance

Demonstrate an understanding of the benefits of

business parks, agglomeration

Discuss the role of grants and subsidies in location

decisions

Analyse industrial inertia in relation to location

Practical exercises.

Links in with globalisation,

government influences,

outsourcing.


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4.9 Trends in Cost Control (guided hours 2 4)

This section links in with efficiency, globalisation, location as well as consideration of costs.



Cost Control OutsourcingDefine outsourcing

Give examples of businesses that have successfully

used outsourcing

Analyse the factors influencing outsourcing

decisions

Discuss outsourcing in a given situation

There are plenty of real examplesto draw on.

Off-shoring

Define off-shoring

Give examples of businesses that have successfully

used off-shoring

Analyse trends in off-shoring

Analyse the factors influencing off-shoring decisionsDiscuss off-shoring in a given situation




Contingency, Tests,


Development


available for synoptic skills development and 20 hours

for project preparation which can be reallocated if

appropriate.


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Unit 5: People in Organisations (55 65 guided learning hours)

The HRM unit of the course aims to give candidates skills in making decisions in practical work-place situat

developed it is important that any solutions are seen in the overall context of a business situation. There is a

overshadow the practical aspects of motivation, particularly in candidates answers to questions. It is impo

solutions alongside the strengths and weaknesses of the theories. Links with other areas of the syllabus sho

for example, there may be financial constraints, impact on production decisions or other factors such as ma

The central role of the management of people in helping business achieve efficiency and competitiveness s

5.1 Motivation (guided hours: 9 11)



Motivational Theory

(probably best taught

before methods)

Understand why a motivated workforce is

important

Use Maslows hierarchy to explain human needs

Explain and discuss the main findings of

motivational theories: Taylor, Maslow, Mayo,

McClelland

Explain and discuss the main findings of

management theories: Herzberg, Vroom, Equity

Theory

Demonstrate an understanding of and discuss the

Hackman and Oldham job characteristics model

Discuss the usefulness of these ideas in practical

situations

Theory should be developed

alongside practice.

Experience in part time jobs is auseful starting point.


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Monetary and Non-

Monetary Motivation

Monetary methods

Explain the main forms of financial motivation:

Hourly pay

Salary

Piece rate

PRP, bonuses

Profit sharing

Share ownershipFringe benefits

Commission

Relate these to the theories

Discuss their likely effectiveness and

appropriateness in a given situation

Study of newspapers/magazines

to compare pay/conditions.

Link payment methods with job/

situation.

Non-monetary methods

Explain the main forms of non-financial motivation:

Delegation

Job enrichment

Job enlargement

Team working

EmpowermentJob rotation

Modern techniques (Saatchi and Switch)

Relate these to the theories

Discuss their likely effectiveness and

appropriateness in a given situation

Football teams?

Case study development.

Employee

Participation

(best considered after

theories)

Explain participation within the context of

motivation

Analyse and discuss methods of participative

decision-making including pros and cons

Links in with trades unions.


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5.2 Leadership and Management Styles (guided hours: 4 6)

Leadership and management need to be developed alongside the ideas that arrive out of consideration of m



Styles ofManagement

Understand the importance of leadership inbusiness

Discuss the qualities of a good leader in different

circumstances

Understand and discuss the role of a leader

Understand and discuss the role of a manager

Demonstrate the difference between task needs and

people needs

Distinguish between leadership and management

Recognise the link between McGregors theory X

and Y and the qualities of a leader

Explain different styles of leadership:

Autocratic

Democratic

Paternalistic

Laissez faire

Discuss the likely effectiveness of these styles in a

given situation

Discuss the appropriateness of a leadership style in

a given situation

Justify a change of leadership style in a given

situation

What makes a good leader?

Although not in the syllabus, it

will be necessary to develop the

role of a manager alongside the

role of a leader.

Examine different roles and

different management styles.

McGregor is about management

perceptions not workers


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5.3 Management by Objective (guided hours: 2 4)

Although management by objectives (MBO) in its original sense is less fashionable than it used to be, there

of targets, particularly in the public sector, where targets are used to achieve results desired by managemen

In one sense these often go against the ideas of Drucker in that targets are imposed rather than negotiated,

suitable for discussion of the issues. This section links in with objectives (1.3).



Management by

Objectives

Understand the role that Drucker played in

developing management by objectives

Explain management by objectives

Discuss the advantages and disadvantages of

management by objectives including unforeseen

outcomes

Objective setting exercise.

Measuring achievement of

targets.

Develop appropriate and

inappropriate objectives.


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5.4 Labour Turnover (guided hours 2 4)

This section links in with ideas about Motivation (5.1) and Absenteeism (5.5).



LabourTurnover

Understand the likely impact of high or low labourturnover on a business

Discuss likely causes of high labour turnover

Calculate and interpret labour turnover in a given situation

Assess the extent of labour turnover as a problem in a

given situation

Understand methods of reducing labour turnover

Recommend actions to reduce labour turnover in a given

situation

Examine situations in which thereis high/low labour turnover.

Not necessarily bad to have high

labour turnover.

5.5 Absenteeism (guided hours: 2 4)

This section links in with ideas about Motivation (5.1).



Absenteeism Understand the impact that high absenteeism might have

on a business

Understand likely causes of high absenteeism

Calculate and interpret absenteeism in a given situation

Discuss potential solutions to high absenteeism

Recommend a solution to high absenteeism in a given

situation

Examine reasons for absenteeism

in a practical situation.

Discuss absenteeism statistics.


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5.6 Human Resource Management and Work Force Planning (guided hours: 4 6 for Introductio

Training; 4 6 for the Workforce Plan; 4 6 for Organisational Structure)

Much of this unit can be taught through practical classroom exercises, taking the process of a job through f

(redundancy/dismissal). Organisational structure can be covered in a practical way, too, by looking at a vari


Introduction Understand the purpose and functions of HRM (in

larger firms, a separate functional department)

Demonstrate an understanding of the move from

personnel to HRM and the involvement of the

whole business in HRM

Recruitment Understand the difference between internal and

external recruitment and recycling

Discuss the impact on a business of choosing either

internal or external recruitment

Understand the processes involved in recruitment:

Job analysisJob evaluation

Job description

Person specification

Attracting applicants

Curriculum vitae

Understand methods of selection:

Interviews

Intelligence tests

Personality tests

Other selection procedures

Discuss appropriate recruitment/selection methods

in a given situationDiscuss the merits of internal versus external

recruitment

Practical job design and

recruitment exercise using

resources such as newspapers,

the internet.


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Training Understand the importance of training in a

business organisation

Understand why some businesses choose not to

train their staff

Link training with concepts such as

competitiveness, quality, participation

Understand the link between training and Investors

in PeopleDescribe different types of training:

Induction

On the job

Off the job

Retraining


investing in a training programme

Understand the importance of Training Needs

Analysis

Discuss appropriate training methods in a given

situation

Possible opportunity for a

visit supermarket, training

organisation.

The Workforce Plan Understand the elements of a work force plan:Staff audit

Staff targets

Staff planning

Analyse and discuss the elements in a given

situation

Discuss the advantages and disadvantages

of flexible working to both a business and its

employees (this could be linked in with motivation

ideas)

Discuss other aspects of developing a flexible

workforce


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Organisational

Structure

Recognise different approaches to organisational

structure (hierarchical, matrix, formal, informal)

Explain features of structures:

Span of control

Levels of hierarchy

Chain of command


different types of structure:Flat

Narrow

Matrix

Discuss the relative merits of centralisation/

decentralisation

Explain the difference between centralised and

decentralised organisations


delegation

Discuss the benefits and consequences of changing

an organisation structure

Discuss the effects of structure on an organisations

performance

Recognise the merits of de-layering and downsizing

Discuss the advantages and disadvantages of de-

layering/downsizing in a given situation

Justify the appropriateness of particular structures

in a given situation

Discuss the extent to which individuals might

operate in a way different from that suggested by

an organisation chart

Recommend methods for improving an

organisation structure

Examination of actual

businesses, discussing strengths

and weaknesses.

Design of a new structure

linking in with motivation,

objectives, markets, etc.


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5.7 Change management (guided hours 4 6)

This section is central to the subject and should bring together work on objectives and strategies as well as

management of people.


candidate activitiesManagement of

Change

Understand the reasons for change

Internal

External

Understand why change is sometimes resisted

Discuss factors that may enable change and

factors that may limit change

Analyse the need for change in a given situation

Discuss how corporate culture can influence the

likelihood of success in achieving change

Discuss methods that management might use to

bring about change in a given situation

Case Studies, visiting speakers,

TV programmes.


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5.8 Employment Law and Collective Representation (guided hours: 3 5)

This section links with legal constraints (1.6) and HRM functions (5.6).



The Principles ofEmployment Law

(see also 1.6)

Understand the basic principles of employment lawincluding:

Minimum wage

Sex and age discrimination

Health and safety

Contracts of employment

Data protection

Employment Act

Understand the difference between redundancy and

dismissal

Discuss the grounds for unfair dismissal

Explain the processes involved in a claim for unfair

dismissal including employment tribunals

Discuss the impact of employment legislation on a

given business and its employees

Visit to a tribunal?

Visiting speakers.

Trades Unions Describe types of employee organisations including

trades unions

Describe the roles of trades unions including

collective bargaining

Understand the key legislation applying to trades

unions

Describe forms of industrial action

Discuss the advantages and disadvantages of trades

unions to both employees and employers

Analyse the factors determining the strength of a

trade union including union density

Discuss the advantages and disadvantages to a

business of union recognition

Discuss the role of the TUC

Visiting speaker.

Trades unions websites.


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Employer Employee

Relations

Explain the roles of employee/employer advisory

organisations

ACAS

TUC

CBI

Discuss the value of such organisations and their

processes to both businesses and employees

See above

5.9 Labour Markets (guided hours: 2 4)

This section links in with sections on motivation, trades unions and international markets.


candidate activitiesLabour Markets Understand the determinants of labour demand

Understand the determinants of labour supply

Analyse how the market may operate to determine

wages

Analyse a labour market in a given situation

Discuss the impact of skills shortages in a given

situation

Recommend strategies to overcome skills shortages

Comparison of wages for a

variety of jobs.

Talk with employers.

Identification of skills shortages.

Links in with wages, demand and

supply.

Links in with training.

EU Enlargement Analyse the impact of EU enlargement on labour

markets

Discuss the advantages and disadvantages of new

sources of supply of labour on a given business andthe wider community

Discuss possible new sources of labour supply

cambridge pre-u teacher guide business and management

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